conflicting answers

andys15

Hi I have a nationwide gold credit card, which I have put £2000 on balance transfer. I am going to be using this card abroad. I have phoned nationwide, who have given me 2 different answer to my question.

If I spent £1000 abroad, come home and repaid that £1000, what would that £1000 pay off,and would my £2000 balance transfer still be interest free. One Lady there said I would have to pay it all off £3000 by 56 days or it would incur the variable rate after 56 days, the other lady said mt £2000 BT would remain 0% for 13 months regardless, please help.

On another note, I have a Nationwide debit visa for withdrawing cash, which wont charge me, but when the caashpoint in usa asks me which exchange rate to take , which is the best option. I cant remember what the cash machines ask you abroad,but I know Irecently used one and I chose the wrong option, please help

vmt

andy

IWantToBeFree_2

I imagine that the £1000 payment will come off the balance transfer, most lenders take the payment off the amount with the lowest interest, so the balance transfer would be at 0% and the purchases would incur interest.

So £1,000 @ 0% and £1,000 at your purchases rate.

YorkshireBoy

Nationwide is one of a very small number of cards having a 'positive payment hierarchy', so any payment you make will go towards the highest interest rate debt, ie your purchases.

http://www.nationwide.co.uk/creditcard/goldcard/more-details.htm (see 'Allocation of payments')

andys15

i kid you not,I have just phoned up nationwide again and got a third answer, the lady said that if i spent £1000 then repaid £1000, £500 would be paid of my purchases and £500 of my BT, so therefore I would pay interest on £500. Totally confused,how can I have 3 different answers.

NickX

I can second YorkshireBoy's response.

Nationwide is unusual in that the allocation of payments is actually in favour of the customer, so you can spend on the card and still benefit fully from your Balance Transfer promotion.

Note that with most other cards you would not be able to do this and would end up with a trapped Purchase balance accruing interest.

Also when abroad, always ask for the payment to be made in the currency local to the country which you are visiting so that you can benefit from the fee-free foreign currency transfer offered by Nationwide.

Nationwide do appear to have certain features geared towards benefiting the customer which is a welcome change in the current climate.

exel1966

andys15 wrote: »

Totally confused,how can I have 3 different answers.

As per above ! I'm afraid this is a very common sympton of large call centres who have a high turnover in staff and who receive minimal training. Sales targets are far more important than customer service or training nowadays ! Believe it or not Nationwide are one of the better ones ! There are many which are far worse particulalry those with overseas call centres. !!

benf90

Just out of curiosity... what will happen before the payment actually credits the account?

I know that the payment is applied to the transaction with the highest rate of interest. But, does interest accrue on a daily basis as with other credit cards?

As the full balance isn't being cleared every month now it's a revolving balance so the 'up to X' amount of days interest free wouldn't apply... or is another thing that's different with Nationwide?

If interest is accrued on a daily basis any purchases will presumably accrue interest until the day they're paid off.

JohalaReewi

andys15 wrote: »

Hi I have a nationwide gold credit card, which I have put £2000 on balance transfer. I am going to be using this card abroad. I have phoned nationwide, who have given me 2 different answer to my question.

If I spent £1000 abroad, come home and repaid that £1000, what would that £1000 pay off,and would my £2000 balance transfer still be interest free. One Lady there said I would have to pay it all off £3000 by 56 days or it would incur the variable rate after 56 days, the other lady said mt £2000 BT would remain 0% for 13 months regardless, please help.

As has been said, the £1000 will pay off the highest interest rate debt first.

On another note, I have a Nationwide debit visa for withdrawing cash, which wont charge me, but when the caashpoint in usa asks me which exchange rate to take , which is the best option. I cant remember what the cash machines ask you abroad,but I know Irecently used one and I chose the wrong option, please help

Choose to have your debit card billed in the local currency (eg USD) so Nationwide do the currency conversion to GBP otherwise you will get a different rate and probably commission charged as well.